Monday, July 24, 2023

"Filing a Case for BP 22 Violation: A Step-by-Step Guide"



How to file a case for violation of Bp 22?

Generally, BP 22 punishes a person for issuing a worthless check.

The following essential elements must be present in order to be liable under BP 22:

(1) the person accused of violating the law makes, draws or issues any check for account or for value;

(2) he has knowledge at the time he issued the check that he does not have sufficient funds in or credit with the drawee bank for the payment of the check when presented for payment; and,

(3) the drawee bank dishonors the check because of insufficiency of funds, or it would have dishonored the check for the same reason if the issuer did not order the bank to stop payment for no valid reason.

 The law presumes that the issuer knew of the insufficiency of his funds if the check is dishonored within 90 days from the date of the check.

 This presumption is overcome only if the issuer pays or makes arrangements for payment of the full amount of the check within five banking days after receiving a notice of its dishonor.

 Furthermore, there must be proof that that the issuer was notified of the fact of dishonor, and proof that the issuer had received such notice of dishonor.

 What acts are penalized under the law?

A. Drawing a Check Without Sufficient Funds (Sec. 1)

A person makes or draws and issues any check

The check is made or drawn and issued to apply on account or for value

The person who makes or draws and issues the check knows at the time of issue that he does not have sufficient funds in or credit with the drawee bank for the payment of such check in full upon its presentment

The check is subsequently dishonored by the drawee bank for insufficiency of funds or credit, or would have been dishonored for the same reason had not the drawer, without valid reason, ordered the bank to stop payment

B. Failing to Keep Sufficient to Cover a Check Issued (Sec. 1, par. 2)

 A person has sufficient funds in or credit with the drawee bank when he makes or draws and issues a check

He fails to keep sufficient funds or maintain a credit to cover the full amount of the check if presented within 90 days from the date appearing

The check is dishonored by the drawee bank

 Who are liable?

1. The person who issued the check.

2. An accommodation party is one who has signed the check without receiving value in exchange, and who issues the check for the purpose of lending his name to some other person.

3. In case a check is issued in behalf of a corporation or other legal entity, the person who actually signed the bounced check is liable.

 When to File a criminal complaint;

Any alleged violation of BP 22 pursued through the filing of a criminal complaint must be filed within four years from the dishonor of the check, before the office of the public prosecutor.

 If the public prosecutor finds probable cause (i.e., determines that a check without sufficient funds was indeed issued, and it was the respondent who had issued it), an Information will be filed before the proper Metropolitan Trial Court or Municipal Trial Court. Trial will follow.

 What is the penalty?

If the accused is found guilty, BP 22 provides that the penalty for its violation is imprisonment for at least 30 days but not more than one year, or a fine of at least double the amount of the check but not to exceed P200,000.

 Under AC 13-2001, the SC clarified that imprisonment under BP 22 is still possible. A fine is only preferred over an imprisonment sentence if it would better serve the interests of justice — such as if the accused is a first time offender, or there is good faith involved.

 Even if only a fine is imposed, the accused may still suffer subsidiary imprisonment if he is unable to pay.

 In case the accused is acquitted and the reason for the acquittal is insufficiency of evidence, the accused may still be held civilly liable and ordered to pay the value of the bounced check.

It must also be remembered that prosecution under BP 22 is not a bar for prosecution for Estafa, and the issuer of the check may be held liable for one or both crimes, singly or simultaneously when the complaints are filed in separate courts.

The essential elements of estafa under Article 315 (2-d) are:

(a) a check is postdated or issued in payment of an obligation contracted at the time the check is issued;

(b) lack or insufficiency of funds to cover the check; and

(c) damage to the payee thereof.

 It is the deceit or fraud attendant to the issuance of the check which is punished.

 Prima facie evidence of deceit exists by law upon proof that the drawer of the check failed to deposit the amount necessary to cover his check within three days from receipt of the notice of dishonor. The key issue is whether the complainant would have parted with his money, property or any other object of the transaction were it not for the issuance of the check, which turns out to be unfunded.

 But the issuer of the check is not left with remedies. Our Supreme Court has sanctioned numerous defenses which have acquitted individuals charged with a violation of BP 22. Possible defenses in an indictment include 1) payment of the value of the dishonored check within five banking days from receipt of the notice of dishonor; 2) payment of the value of the check before filing of the criminal casein court; 3) failure to serve a written notice of dishonor of the check to the issuer; 4) novation or change in the underlying obligation of the parties before the filing of the criminal case in court; 5) a stop payment order pursuant to a valid reason such as non-delivery of goods or services; and 6) knowledge by the payee that the check was not supported by sufficient funds when the issuer issued the check.

 The running of the prescriptive period for the prosecution of a BP 22 offense is interrupted only when the complaint or information is filed in court, not when the complaint is filed with the prosecutor’s office.

 Law on Prescriptive Period re violations of Ordinances and Special Laws

 Applying a vintage law, Act No. 3326 (1926), the prescriptive period for the violation of BP 22 would be four years.  The prescriptive period shall commence to run from the discovery of the offense or from knowledge by the payee or holder that the check has been dishonored.

 Section 2 of Act No. 3326 states when the running of the prescriptive period is interrupted:

 “Sec. 2. Prescription shall begin to run from the day of the commission of the violation of the law, and if the same be not known at the time, from the discovery thereof and the institution of judicial proceedings for its investigation and punishment.

 “The prescription shall be interrupted when proceedings are instituted against the guilty person, and shall begin to run again if the proceedings are dismissed for reasons not constituting jeopardy.”

 What should the drawee do once the check bounces? (Sec. 3)

It shall be the duty of the drawee of any check, when refusing to pay the same to the holder thereof upon presentment, to cause to be thereon, or attached thereto, the written, printed, or stamped in plane language reason for drawee’s dishonor or refusal to pay the same: Provided, That where there are no insufficient funds in or credit with such drawee bank, such fact shall always be explicitly stated in the notice of dishonor or refusal. In all prosecutions under this Act, the introduction in evidence of any unpaid and dishonored check, having the drawee’s refusal to pay stamped or written therefor or attached thereto, with the reason therefor as aforesaid, shall be prima facie evidence of the making or issuance of said check, and the due presentment to the drawee for payment and the dishonor thereof, and that the same was properly dishonored for the reason written, stamped or attached by the drawee on such dishonored check.

 Is a notice of dishonor an indispensable requirement in a prosecution for violation of B.P. 22?

A notice of dishonor is not indispensable as it is not an element of the offense. However, evidence that a notice of dishonor has been sent to and received by the accused is actually sought as a means to prove the second element, such that the absence of sufficient proof of receipt thereof can be fatal in the prosecution’s case. (Jesusa T. Dela Cruz v. People, G.R. No. 163494, August 3, 2016)

 How should a notice of dishonor be served on the drawer?

 This may be done personally or by mail. However, note that when the notice of dishonor is served by mail, it is not enough to simply present the letter with a registry receipt or return card as evidence that a notice of dishonor has been served.

 What evidence is needed to prove receipt of notice of dishonor?

 It is not enough for the prosecution to prove that a notice of dishonor was sent to the petitioner. It is also incumbent upon the prosecution to show “that the drawer of the check received the said notice because the fact of service provided for in the law is reckoned from receipt of such notice of dishonor by the drawee of the check.” (Alferez v. People, et al., 656 Phil. 116 (2011)

 The Court, however, considers Campos’ defense that she exerted efforts to reach an amicable settlement with her creditor after the checks which she issued were dishonored by the drawee bank, BPI Family Bank. Campos categorically declared in her petition that, “[she] has in her favor evidence to show that she was in good faith and indeed made arrangements for the payment of her obligations subsequently after the dishonor of the checks.” Clearly, this statement was a confirmation that she actually received the required notice of dishonor from FWCC. The evidence referred to in her statements were receipts dated January 13, 1996, February 29, 1996, April 22, 1998 and May 26, 1998 issued by FWCC to Campos for payments in various amounts ranging from P2,500.00 to P15,700.00. Campos would not have entered into the alleged arrangements beginning January 1996 until May 1998 if she had not received a notice of dishonor from her creditor, and had no knowledge of the insufficiency of her funds with the bank and the dishonor of her checks.

 When should a complaint for violation of B.P. 22 be filed?

The criminal complaint for violation of B.P. 22 must be filed within four (4) years from the time the checks have been dishonored.

Generally these are the evidence needed in the BP22 case.

1.       Checks issued

2.       Notice of Dishonor  by the bank because of closed account or insufficiency of funds

3.       Letter informing the payor to make good of the check within 5 days from the receipt of notice of insufficiency of funds or that the check is being drawn from a closed account.

4.       Proof that the payor received such letter.

5.       Certificate to file action if the partied are residing at the same barangay.

6.       Text or chat messages about the loan.

7.       Complaint affidavit of the payee and his/her witnesses.

8.       Police blotter or blotter report  extract.

9.       Contract of loan or mortgage or others (if available).

10.   Proof receipt of payment or acknowledgment receipt.

11.   Promissory note (if available).

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